Home financing in San Juan County.

Home financing is any loan or program that helps you purchase, refinance, or improve a home. The most common tool is a mortgage — a long-term loan secured by the property itself. You repay it in monthly installments over 15 to 30 years, and the lender holds a lien on the home until it is paid off.

There are several types of home loans worth knowing about:

• **Conventional loans** — offered by banks and credit unions, usually requiring a credit score of 620 or higher and a down payment of 3–20%.

• **FHA loans** — backed by the Federal Housing Administration; they allow lower credit scores and down payments as low as 3.5%. They are not FHA's headline but a useful tool for first-time buyers.

• **USDA Rural Housing loans** — San Juan County properties may qualify as rural under USDA definitions, which can mean zero-down financing for income-eligible buyers. Worth asking about.

• **VA loans** — for eligible veterans and active military; zero down payment, no private mortgage insurance.

• **Home equity loans / HELOCs** — if you already own property with equity, these let you borrow against it for improvements or purchases.

• **ITIN loans** — mortgages available to borrowers who have an Individual Taxpayer Identification Number instead of a Social Security Number. Several lenders in Washington State offer these.

For solo contractors and small investors, the right loan type depends on your income structure, residency status, credit history, and the property's intended use.

Gathering documents early saves time and avoids surprises. What you need depends on your situation, but here is a solid starting list:

**For all borrowers:**

- Government-issued photo ID (passport, driver's license, consular ID / matrícula consular)

- ITIN or Social Security Number

- Two years of federal tax returns (personal and business if self-employed)

- Two most recent bank statements (all pages)

- Two most recent pay stubs (if employed by someone else)

- Proof of any other income — rental income, seasonal work, farm sales, Social Security

- 12–24 months of bank statements (if applying for a bank-statement loan as a self-employed borrower)

**For self-employed and contractor borrowers:**

- Business tax returns (Schedule C, partnership returns, or S-corp returns)

- Profit-and-loss statement prepared by a CPA or bookkeeper

- Business license or DBA documentation

**For investment or rental property purchases:**

- Current lease agreements on any properties you already own

- Documentation of rental income history

**For ITIN borrowers specifically:**

- ITIN letter from the IRS

- 12–24 months of bank statements as alternative income documentation

- Proof of residency in Washington State (utility bills, lease agreements)

**Property-related documents (provided later in the process):**

- Purchase and sale agreement

- Property tax records

- HOA documents (if applicable)

You do not need to have every document on day one. A good lender will give you a specific checklist once you have a preliminary conversation.